China has implemented new export controls on a range of minerals, including antimony, a crucial component for the U.S. defense industry due to its use as a flame-retardant in machine bearings. Antimony, a lesser-known metal, finds applications in various defense technologies such as ammunition, infrared missiles, nuclear weapons, and night vision goggles, as well as in batteries and photovoltaic equipment. China, the world's largest producer of antimony, accounted for nearly half of global production last year.
The restrictions, effective as of Sunday, apply to six antimony-related products, including antimony ore, antimony metals, and antimony oxide. The U.S. imported approximately 22,000 tons of antimony last year, with China supplying 63% of U.S. imports of antimony metal and oxide, followed by Belgium at 8%.
The Chinese Ministry of Commerce stated that the restrictions aim to safeguard national security and interests, as well as fulfill international obligations related to non-proliferation. The U.S. and other nations have been working to reduce their dependence on China for critical materials in defense and energy sectors, with China being the primary source for 25 essential minerals.
China's recent export controls on antimony follow a series of similar measures introduced over the past year, including bans on exporting technology for rare earth magnets and critical material extraction. These actions have led to concerns about vulnerabilities in Western economies due to heavy reliance on Chinese supplies.
Antimony prices have surged to a record $22,750 per ton this year, and the new export controls are expected to further drive up prices. Sellers now need approval from the Chinese government through a licensing process, which could take up to three months for dual-use civilian and military materials and technology.
U.S. Congressman Rob Wittman emphasized the need to diversify critical mineral supply chains away from China to mitigate risks posed by such restrictions. One U.S. company, Perpetua Resources, is aiming to produce domestic antimony with support from the Pentagon and the U.S. Export-Import Bank, facing challenges from environmental groups but seeking to expedite production in response to China's restrictions.
China has also imposed limits on exports of superabrasive materials and the machines used to produce them, essential for various industries in the U.S., including defense and energy sectors. Experts warn that the scarcity of these materials could have severe economic implications and stress the importance of building domestic capacity to support the defense industrial base.
